Public AdministrationWritten evidence submitted by the DfT (PROC 41)

Thank you for your letter dated 13 June 2013. I have set out responses to the queries raised in your letter below, but please let me know if you need any further information.

We are working closely with the Government Procurement Service (GPS) to transfer responsibility for the procurement of a number of categories of goods and services, as listed below. We consider these categories to be “common” and the use of centralised procurement arrangements related to them to be “mandated”. Our aim is to complete this process by the end of 2013, which is the target that has been mandated by the Minister for the Cabinet Office:

Information and Communications Technology;

Professional services, eg consultancy contracts;

Facilities Management;

Office Services;

Energy and Fuels;

Fleet Management;

Print and Print Management;

Travel;

Learning and Development;

Communications;

Clinical and Medical Supplies.

It should be noted that within some of the categories listed above there are some contracts that will remain under the Department’s control, eg where long term arrangements, such as a Private Finance Initiative deal, already exist and where it would not be value for money to terminate these contracts to move to a GPS managed arrangement. Once these current contracts have expired we would also seek to transfer these elements too.

We are also working closely with the GPS in relation to Managed Services. Working relationships are being established between DfT and GPS procurement staff to facilitate seamless work-package transition. By freeing-up professional resource which had previously been tied-up with the transactional elements of the procurement cycle, the DfT can benefit by re-focusing that resource to high impact, maximum value-added procurement areas.

The Department determines, in consultation with the GPS, which categories are suitable for central management on a case-by-case basis. The general principle applied is that where a category is clearly commonly procured across government then the default position is that it will transfer to a centralised arrangement. This is subject to ensuring value for money and some exceptions are made, eg where long-term contracts are already in place as outlined in para 3 above. The Department will retain categories of work where it is generally the major or sole user of the goods and services required, eg roads construction contracts will continue to be procured and managed by the Highways Agency.

Philip Rutnam